PPREPARED BY: MILLISA E. SARAMOSING-EQUIT, MBA1INTERNATIONAL BUSINESS AND TRADE (BAMM 6301)Source:-international-business/Chapter 1: Introduction for International Business and Trade1.1 The Definition of International Business and the Rise of GlobalizationReading: What is International Business?LEARNING OBJECTIVES:By the end of this section, you will be able to:1.Know the definition of international business.2.Comprehend how strategic management is related to international business.3.Understand how entrepreneurship is related to international business.The Definition of International BusinessInternational business relates to any situation where the production or distribution of goodsor services crosses country borders. Globalization—the shift toward a more interdependent andintegrated global economy—creates greater opportunities for international business. Suchglobalization can take place in terms of markets, where trade barriers are falling and buyerpreferences are changing. It can also be seen in terms of production, where a company cansource goods and services easily from other countries. Some managers consider the definition ofinternational business to relate purely to “business,” as suggested in the Google case. However,a broader definition of international business may serve you better both personally andprofessionally in a world that has moved beyond simple industrial production. Internationalbusiness encompasses a full range of cross-border exchanges of goods, services, or resourcesbetween two or more nations. These exchanges can go beyond the exchange of money forphysical goods to include international transfers of other resources, such as people, intellectualproperty (e.g., patents, copyrights, brand trademarks, and data), and contractual assets orliabilities (e.g., the right to use some foreign asset, provide some future service to foreigncustomers, or execute a complex financial instrument). The entities involved in internationalbusiness range from large multinational firms with thousands of employees doing business inmany countries around the world to a small one-person company acting as an importer orexporter. This broader definition of international business also encompasses for-profit border-crossing transactions as well as transactions motivated by nonfinancial gains (e.g., triple bottomline, corporate social responsibility, and political favor) that affect a business’s future.Strategic Management and EntrepreneurshipA knowledge of both strategic management and entrepreneurship will enhance yourunderstanding of international business. Strategic management is the body of knowledge thatanswers questions about the development and implementation of good strategies and is mainlyconcerned with the determinants of firm performance. A strategy, in turn, is the central, integrated,and externally oriented concept of how an organization will achieve its performance objectives.